Regal Partners abandoned its attempt to acquire Platinum Asset Management last year due to disagreements over price and the company’s substantial outflows, according to CEO Brendan O’Connor. O’Connor’s remarks at the Macquarie Australia Conference shed light on the failed acquisition. Regal determined that Platinum’s valuation expectations were unrealistic, considering the challenges it was facing.
The failed acquisition contrasts with recent developments involving L1 Capital, another hedge fund, which acquired a significant portion of Platinum founder Kerr Neilson’s stake. L1 Capital has also confirmed that it is in active merger discussions with Platinum, suggesting a potential alternative path forward for the struggling asset manager. The sequence of events highlights the volatility and competitive dynamics within the asset management sector, where performance pressures and market conditions can significantly impact strategic decisions.
